Chen v. Hunan Manor Enterprise, Inc.

CourtDistrict Court, S.D. New York
DecidedAugust 29, 2023
Docket1:17-cv-00802
StatusUnknown

This text of Chen v. Hunan Manor Enterprise, Inc. (Chen v. Hunan Manor Enterprise, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chen v. Hunan Manor Enterprise, Inc., (S.D.N.Y. 2023).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK ee EE a a a □□□ rr oe SHI MING CHEN, LIANHE ZHOU, YONG KANG LIU, JIXIANG WANG, WEI MIN ZHU, BN TR NPONG LIU, QIFANG CHEN,. MEMORANDUM DECISION an , : AND ORDER Plaintiffs, ~against- 17 Civ. 802 (GBD) (GWG) HUNAN MANOR ENTERPRISE, INC., D/B/A HUNAN MANOR, HUNAN MANOR LLC, D/B/A. HUNAN MANOR, HUNAN HOUSE MANOR INC, D/B/A HUNAN MANOR, HUNAN HOUSE . RESTAURANT, INC. D/B/A HUNAN MANOR, . HUNAN HOUSE RESTAURANT NY LLC D/B/A . HUNAN MANOR, HUNAN HOUSE, INC, D/B/A . HUNAN MANOR, A TASTE OF MAO, INC. . D/B/A CHINA XIANG, JINGCHAO LI A/K/A JING CHAO LI A/K/A DIANA LI, ZHIDA LI A/K/A ZHI DA LI A/K/A ALAN LI, and ZHENQI . XIAO A/K/A NANCY XIAO, . Defendants. ex GEORGE B. DANIELS, District Judge: Plaintiffs Shi Ming Chen, Lianhe Zhou, Yong Kang Liu, Jixiang Wang, Wei Min Zhu, Baojun Tian, Xinlong Liu, Qifang Chen, and Pingjin Fan (collectively, “Piaintiffs”) bring this action against Defendants, Hunan Manor Enterprise, Inc., Hunan Manor LLC, Hunan House Manor Inc., Hunan House Restaurant, Inc., Hunan House Restaurant NY LLC, Hunan House, Inc., A Taste of Mao, Inc., Jingchao Li, Zhida Li, and Zhenqi Xiao (collectively, “Defendants”), alleging that Defendants violated the Fair Labor Standards Act (“FLSA”), 29 U.S.C. §§ 201 ef seg., and the New York State Labor Law (“NYLL”), N.Y. Lab. L. $§ 650 et seg. (First Am. Compl. (“FAC”), ECF No. 182, 4 1.) Plaintiffs allege that during their employment at Defendants’ restaurants, Defendants failed to pay Plaintiffs minimum wages, overtime wages, and spread of

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hours pay, under the FLSA and NYLL, and failed to provide wage statements, wage notice and pay stubs under the NYLL. Ud {ff} 1-5.) From February 13 to March 13, 2023, this Court held a bench trial to adjudicate Plaintiffs’ claims against Defendants. (See Transcript of Bench Trial (“Tr.”), ECF Nos. 320, 322, 324, 326, 328, 330, 332.) This Opinion constitutes the Court’s Findings of Fact and Conclusions of Law pursuant to Fed. R. Civ. P. 52 on whether Defendants are liable for violating the FLSA and the NYLL, including whether Defendants’ restaurants qualify as a single integrated enterprise under the labor laws. This Court finds as follows: i. Plaintiffs Yong Kang Liu and Jixiang Wang’s claims are dismissed with prejudice under Fed. R. Civ. P. 41(b) due to Liu and Wang’s failure to appear at trial. ii. Defendants’ restaurants were a single integrated enterprise and Defendants are therefore jointly and severally liable to Plaintiffs. iii. Defendants are liable to certain Plaintiffs for violating the overtime and minimum wage provisions of the FLSA and NYLL. iv. Defendants are not Hable to Plaintiffs for spread of hours pay. v. Plaintiffs do not have standing to recover damages against Defendants for Defendants’ violations of the NYLL’s wage notice and wage statement provisions. vi. Plaintiffs Shi Ming Chen, Lianhe Zhou, Wei Min Zhu, Baojun Tian, Xinlong Liu, Qifang Chen, and Pingjin Fan are awarded a total of $616,386.40, plus all applicable interest. I. BACKGROUND Plaintiffs commenced this instant action on February 2, 2017. (ECF No. 1.) On April 23, 2017, Defendants answered Plaintiffs’ Complaint. (ECF No. 28.) Over the next nearly six years between April 2017 and February 2023, Plaintiffs and Defendants conducted discovery and filed numerous pre-trial motions. During that time, multiple Defendant restaurants filed bankruptcy petitions. (See ECF Nos. 57, 90.)

On February 13-15, March 2, March 7, and March 13, 2023, this Court held a bench trial to adjudicate Plaintiffs’ claims against Defendants. Plaintiffs appeared and testified at trial, except for Yong Kang Liu and Jixiang Wang, who failed to appear. All three individual Defendants appeared and testified at trial. Plaintiffs and Defendants subsequently filed proposed findings of fact and conclusions of law. (Pls.” Mem., ECF Nos. 336; Taste of Mao Defs.” Mem., ECF No, 343; Hunan Manor Defs.? Mem., ECF No. 344, Pls.’ Reply, ECF No. 345; Defs.’ Sur-Replies, ECF Nos. 349 and 350.)! II. STANDARD OF REVIEW Fed. R. Civ. P. 52(a) provides, in relevant part, that a court conducting a bench trial “must find the facts specially and state its conclusions of law separately,” and that “[j]udgment must be entered under Rule 58.” Fed. R. Civ. P. 52(a)(1). Rule 52(a) further provides that such “[f]indings of fact, whether based on oral or other evidence, must not be set aside unless clearly erroneous, and the reviewing court must give due regard to the trial court’s opportunity to judge the witnesses’ credibility.” Fed. R. Civ, P. 52(a)(6). Ht. FINDINGS OF FACT The following section constitutes this Court’s Findings of Fact pursuant to Fed. R. Civ. P. 52(a)(1).2 These Findings of Fact are drawn from the testimony at trial and the parties’ trial exhibits.

' For ease of reference, this Court refers to Defendants Hunan Manor, Zhida Li, and Jingchao Li’s memorandum of law as “Hunan Defs.” Mem.” (ECF No. 344) and to Defendants A Taste of Mao and Zhenqi Xiao’s memorandum of law as “Taste of Mao Defs.” Mem.” (ECF No, 343.) 2 To the extent that any Finding of Fact reflects a legal conclusion, it shall to that extent be deemed a Conclusion of Law, and vice-versa.

A. Defendants i. Defendant Jingchao Li Defendant Jingchao Li is the older sister of Defendant Zhida Li, and the older cousin of Defendant Zhengi Xiao. Jingchao Li owned and operated Hunan House, which opened in June 2014 and was located at 40 W. 56th Street in Manhattan. Hunan House was operated by Hunan House, Inc., which Jingchao Li owned and operated as its President, with Zhengi Xiao serving as Vice President. From June 2014 until on or about around October 2014, Jingchao Li and Zhenqi Xiao jointly operated Hunan House. At Hunan House, Jingchao Li determined employees’ wage rates, distributed pay, determined work schedules, and directed employees to record their working time. In her testimony, Jingchao Li also stated that she was aware of overtime requirements if an employee worked over 40 hours in a week. In 2013, Jingchao Li also worked at Hunan House Manor, which was owned by Zhenqi Xiao. There, Jingchao Li had the authority to hire employees, exercised authority over employees’ working hours, distributed employees’ pay when Zhenqi Xiao was not available, and provided the restaurant with supplies. Beginning in 2011, Jingchao Li also periodically helped her brother, Zhida Li, with operating Hunan House Restaurant. There, Jingchao Li had the power to hire and promote employees and distributed employees’ pay. ii. Defendant Zhida Li Defendant Zhida Li is the younger brother of Defendant Jingchao Li. Zhida Li owned and operated Hunan House Restaurant, located at 137-40 Northern Boulevard in Flushing, New York. At Hunan House Restaurant, Zhida Li hired employees and distributed employees’ pay.

3 Tr. 670:25-670:13 (“I try my best not to have overtime ... we were aware that every week, if it’s over 40 hours of work during the week, it’s time and a half pay.”).)

From August 2015 to November 2017, Hunan House Restaurant was operated by Hunan House Restaurant NY LLC, in which Zhida Li had an ownership stake. From time to time, Zhida Li was involved in operating Hunan House, which was owned by his sister Jingchao Li. At Hunan House, Zhida Li directed the work of employees.

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Chen v. Hunan Manor Enterprise, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/chen-v-hunan-manor-enterprise-inc-nysd-2023.